Using Transformers in Financial Recommenders: Part Three – Transactions is all you need

ARTIFICIAL INTELLIGENCE / BANKING & FINTECH

The vast expanse of the financial sector encompasses services like personal banking, credit cards, loans, insurance, investment products, wealth management and other. Intriguingly, individual interactions with these services can diverge widely, even when demographic profiles are strikingly similar. This prompts an essential inquiry: Can financial recommendation systems, powered by Large Language Models (LLMs), be built purely on transactional data, sidelining the conventional reliance on demographics? Why transactional data over demographics? The edge of transformer models …

Using Transformers in Financial Recommenders: Part Two – Security is all you need

ARTIFICIAL INTELLIGENCE / BANKING & FINTECH

The integration of AI into finance is not just an emerging trend; it’s a revolutionary step that’s transforming the way financial institutions operate. With the introduction of Generative AI Transformer-based models, the industry is gaining the ability to deliver personalized and dynamic customer experiences that cater to ever-changing customer needs. The potential and the challenges The possibilities are undoubtedly exciting, but they come with a set of challenges. These include the costs associated with implementing …

Using Transformers in Financial Recommenders. Part One – Quality is all you need

ARTIFICIAL INTELLIGENCE / BANKING & FINTECH

In 2017, a landmark paper titled “Attention is All You Need” was published by a team of Google researchers. This innovative work introduced the Transformer architecture which replaced recurrent neural networks (RNN) and convolutional neural networks (CNN) with attention mechanisms as the primary operation for processing sequences. This groundbreaking approach resulted in models that delivered superior results, achieved quicker processing times and required less data for training. Why is attention transformative? The answer lies in …

The Future of Trust (Trust is a promise made and kept)

BANKING & FINTECH

The ultimate rug pull is when trust is shattered about money. We place our money in banks and take for granted that it will still be there when needed. But behind the curtain, money moves around the banking system like ocean currents. It seems permanent, but it’s also a complex system that impacts everything on the planet. Banking crises, bipartisan politics, inflation, and instant 24/7 social media have changed the nature of trust in ways …

Geoffrey Hinton tells us why he’s now scared of the tech he helped build (TechnologyReview – MIT)

ARTIFICIAL INTELLIGENCE

“As their name suggests, large language models are made from massive neural networks with vast numbers of connections. But they are tiny compared with the brain. “Our brains have 100 trillion connections,” says Hinton. “Large language models have up to half a trillion, a trillion at most. Yet GPT-4 knows hundreds of times more than any one person does. So maybe it’s actually got a much better learning algorithm than us.”

OpenAI’s approach to AGI

ARTIFICIAL INTELLIGENCE

Artificial Intelligence (AI) has already made significant strides in transforming our lives, from voice assistants like Siri and Alexa to self-driving cars and drones. However, as researchers and developers continue to push the boundaries of AI, we are getting closer to achieving Artificial General Intelligence (AGI), a system that can perform any intellectual task that a human can. The potential benefits of AGI are immense, but so are the risks. In a recent article (link …

Banks vs. Fintechs: Why all the billions in the world can’t help Wall Street crush its digital rivals

BANKING & FINTECH

“Banks are much larger and more established, heavily regulated, highly bureaucratic, technologically lagging, and focused on shareholders,” the report said. “Fintechs, by contrast, are autonomous, lean, entrepreneurial, lightly regulated, and technologically advanced. “Given these stark differences, it’s no wonder that culture is constantly cited as a major source of failure for bank-fintech combinations.”

The Future of Cybersecurity with Artificial Intelligence (AI) and Machine Learning (ML)

ARTIFICIAL INTELLIGENCE / CYBERSECURITY

Although, Artificial intelligence (AI) helps experts with crime analysis, research, and understanding, it has a favourable influence on cyber security. It strengthens the tools that businesses use to safeguard their networks, clients, and workers against dangerous online behaviour. However, artificial intelligence is infamous for requiring a lot of resources. It may not, however, always be relevant. Additionally, it can provide hackers a new tool and advance their abilities. Download here: https://www.preprints.org/manuscript/202301.0115/v1/download Patel, H. The Future …

Artificial intelligence (AI) algorithms: a complete overview

ARTIFICIAL INTELLIGENCE

At the core level, an AI algorithm takes in training data (labeled or unlabeled, supplied by developers, or acquired by the program itself) and uses that information to learn and grow. Then it completes its tasks, using the training data as a basis. Some types of AI algorithms can be taught to learn on their own and take in new data to change and refine their process. Others will need the intervention of a programmer …

[fintech] – Digital Banking Didn’t Kill Bank Branches—But Chatbots Will

BANKING & FINTECH

Bank customers don’t go to bank branches because they want to—they go because they have to (or think that they have to). They go to branches because they think talking to another human is the best (i.e., fastest or most effective) way to do what they need to get done. Rejecting the notion that intelligent digital assistants could become good enough to replace human interaction is like thinking, in 1997, that online banking will never …

McKinsey: What’s new in banking API programs

BANKING & FINTECH

Banking API leaders no longer view APIs simply as technical tools. Their ambitions extend even beyond monetizing APIs to using them to enable entirely new businesses through third parties and collaborations. For example, a bank may enter into an agreement with an insurer to offer an insurance product for small and medium-size businesses. IT and the business work collaboratively to craft a clear API strategy that supports the business’s priorities, and they develop a comprehensive …

A conversation with Sanat Rao on the future of retail banking

BANKING & FINTECH

There are early signs of pick-up in business model innovation, helping banks keep pace with change in order to remain relevant. New innovative digital models are going from strength to strength. These include – Digital-only Banking, Banking as a Service, Embedded Finance, Digital Financial Advisors, Finance Marketplaces, Financial Institutions led Non-finance Marketplaces, Banking Industry Utilities, and Banking Curators. There are significant opportunities that can be unlocked across all these business models to create, deliver, and …

API-Powered Open Banking Is the Future of Finance

BANKING & FINTECH

What Do APIs Provide for Customers? For customers, APIs help streamline the banking process across digital services. By leveraging secure APIs, banks can connect internal transaction systems to online e-commerce payment portals or point-of-sale services. “APIs mean customers can directly access their bank account when executing transactions online, allowing easy tracking of balances and outgoing payments,” says Filep. “They can also enable integrations between physical banks and merchants, which offer consumers financing and lending options …

The Idea behind Lattice-Based Cryptography

BLOCKCHAIN & CRYPTO CCY / CYBERSECURITY

The fear that a quantum computer might be able to crack our existing cryptographic standards is not new. As time goes by, this fear becomes more and more true. “If large-scale quantum computers are ever built, they will be able to break many of the public-key cryptosystems currently in use. This would seriously compromise the confidentiality and integrity of digital communications on the Internet and elsewhere.” — NIST Post-Quantum Cryptography Against this background, the need …

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